BANKS, FINANCIAL LIBERALIZATION AND THE ‘INTEREST RATE PREMIUM PUZZLE’ IN EAST ASIA

This paper develops a model of a representative transition economy to explain the stylised facts of output declines and real exchange rate appreciation in the early stages of transformation. These facts can be explained by supply-side shocks, interest rate liberalisation or a reduction in core inflation. The policy implication is that price liberalisation in advance of financial liberalization ...

Abstract Financial crises and currency instabilities within developing and emerging economies during the last decade had a tremendous impact on the economic performance and increased vulnerability of economies against domestic and foreign shocks. The timing of capital liberalization is one of the significant debates among other issues related to currency instability, and it would be more conven...

Using data from publicly traded South Korean corporations for the period 1980-94, this paper finds evidence that increases in financial liberalization that accompanied the more general process of financial globalization have significantly reduced the maturity structure of corporate debt contracts, thus lending partial empirical support to the idea that financial liberalization can be well descr...

We examine optimal monetary policy under prevailing Chinese policies – including capital controls, nominal exchange rate targets, and costly sterilization of foreign capital inflows. China’s combination of capital controls and exchange rate pegs disrupts its monetary policy, precluding adjustments that could maintain macroeconomic stability following a set of shocks that mirror its experience d...

sunflower is one of four main annual oil plants that cultivated in oil and nut varieties. this plant as an important and industrial food product and because of nutritional features and the potential for earning exchange has become a valuable product in foreign and inner markets and has a special position in agricultural sector. khoy, by producing 40 percent of sunflower productions of country a...

The majority of OECD countries has experienced a reduction in the volatility of output during the last two decades. This period is also characterized by the liberalization of the capital accounts of these countries. This paper examines whether capital markets liberalization can lead to lower macroeconomic volatility. We study a business cycle model with multiple countries and financial market f...

Financial liberalization has been a controversial issue, as empirical evidence for growth enhancing effects is mixed. Here, we find sizable welfare gains from liberalization (cost to repression), though the gain in economic growth is ambiguous. We take the view that financial liberalization is a government policy that alters the path of financial deepening, while financial deepening is endogeno...

Financial instability refers to the situation when financial system faces some disturbances and volatility. There are important factors that can have a significant influence on stability or of sector. The main objective this study is examine impact sector development, liberalization, GDP growth rate instability. Using data from 53 countries 2000 2016 employing battery estimation techniques cons...

Sunflower is one of four main annual oil plants that cultivated in oil and nut varieties. This plant as an important and industrial food product and because of nutritional features and the potential for earning exchange has become a valuable product in foreign and inner markets and has a special position in agricultural sector. Khoy, by producing 40 percent of sunflower productions of country a...